Monday, November 26, 2007

Too Much Methodology for Research Projects?

3M depends on new product development as its engine for growth and eases back on the throttle with Six Sigma methods for research processes. It may have over-emphasized disciplined methods in an area where structure can hinder creativity. ...

... "Under Six Sigma, the free-wheeling nature of brainstorming and the serendipitous side of discovery is stifled. Proponents contend such methodologies' rules keep researchers on track and accountable for producing. " ...


Via Design News: 3M R&D

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Monday, November 06, 2006

Earned Value Lies and Truths

There was a great quote from Benjamin Disraeli in David Hillson's letter to the editor in the latest PM Network Magazine.

Disraeli allegedly* said, "There are three kinds of lies: lies, damn lies, and statistics."

* As an aside, there's apparently some debate over the actual origin of this phrase.

In any case, Hillson's interesting letter was cautioning those who frequently misapply statistics, and offered some clarification the terminology----specifically, the mean (average), mode (most frequently occuring item), and median (the middle item if all were lined up in order).

I find that many misuse Earned Value statistics the same way. The intent of EVM is to be an early indicator of a potential cost or schedule overrun (and I personally feel that it's better at predicting cost than schedule). However, much like the Ghost of Christmas Future, it's not set in stone. There are many things a project manager can do to get things back in order. More importantly, sometimes there are reasons for the apparent variance that indicate that the variance is explainable and not a concern at all.

The key with EVM (much like any metric) is to not take the statistics at face value, and to use them as a trigger to do further subjective examination. It's a tool, and organizations often overuse such tools (much like they do with Six Sigma). If all you have is a hammer, everything looks like a nail.

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Tuesday, August 15, 2006

ITIL Six Sigma: Future IT Operations ...

The convergence of ITIL and Six Sigma is expected to be the future framework for IT operations. New book explores the use of Six Sigma in the information technology organization. ...

... "Lead Author of the book, Sven den Boer of Getronics said: This long-awaited book on aligning ITIL and Six Sigma is a good start for professionals who want to appreciate how these two approaches can be combined. Proxima Technology played a key role in the book by providing some practical examples to help make it easier for readers to understand. We were pleased to have Linh Ho on the team. itSMF-NL Chief Editor, Jan van Bon was very pleased with the results and added: We have succeeded in finding a great team of authors internationally, experts in both ITIL and Six Sigma. Today, the need for Six Sigma is continuously heard from the IT management field, and we hope to fulfill the fast growing demand with this great best practice. " ...

Proxima Technology's Marketing Director Co-Authors Six Sigma for IT Management Book

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Sunday, July 30, 2006

Project Management Winds Are Changing

There's an excellent article by Betsy Morris in the current issue of Fortune Magazine about how the Jack Welch way of winning is---dare we say---a thing of the past.

How is this relevant to the project management field? Well, for one, it means recognizing the winds of change in the industry, and how projects are selected, promoted, and managed. Above all, this impacts program and portfolio management. Particularly, note four trends in management thinking:

Innovation:

Let's take Welch's old rule of being number 1 or 2 in your market (or else fixing, selling, or closing the business). The new rule is to find a niche and create something new. The article uses CocaCola as an example of a company that was basking in their glory as number 1, but eventually realized (although it took a while) that energy drinks and bottled water were about to pass them. As the article points out, energy drinks "are now expected to outearn every other category of soft drink within three years." Parhaps marketing guru Harry Beckwith said it best in Selling the Invisible when he said that it's fine to do something 10% better until someone else comes along and does it 110% different.

Customer-Centric Management:

Welch started a whole movement of focus on the shareholder, which led many organizations to ignore the future amid pressure to appease shareholders and "make the numbers." Now, organizations realize that the customer is king. The article references several companies that have made this realization, and the trend is heading in that direction. After all, statistics show that even a minor improvement in customer retention leads to a major increase in profitability. The days of short-term thinking may be finally coming to an end.

Reinvention vs. Incremental Change:

Since it seemed Jack Welch could do no wrong, everyone imitated whatever Jack did---and Six Sigma was no exception. The problem is that, according to the article, of the 58 large companies that announced Six Sigma programs, 91% have trailed the S&P 500 since. As the article points out, that's mostly because Six Sigma is intended to "fix an existing process," whereas innovative companies that developed new and unique products (or reinvented their business) took the lead.

Stop Ranking Your Players; Inspire Passion:

Once of Welch's most controversial systems was to constantly rank his employees and regularly weed out the "C" players. But companies have had difficulty getting productivity and innovation out of "increasingly disenfranchised employees." In the article, Christopher Bartlett of Harvard Business School put it best:

"People don't come to work to be No. 1 or No. 2 or to get a 20% net return on assets. They want a sense of purpose. They come to work to get meaning from their lives."
Side editorial: For the "enlightened" approach of finding the hidden strength in everyone (something Peter Drucker always suggested), read Marcus Buckingham's Now Discover Your Strengths (or any of his books for that matter). Or read Dennis Littky's The Big Picture: Education is Everyone's Business. I assure you, you'll never be the same.

Meanwhile, I highly recommend the article (the link is below) for those looking for the latest trends in management thinking, and who want to remain one step ahead.

From a project management perspective, the handwriting is clearly on the wall. The traditional "execute to a set of deliverables" approach won't cut it. Today's project manager needs to be thinking about things like innovation, customer focus, business transformation, business acumen, change leadership, and team passion. Those focused on merely schedule, budget, and scope will soon be dinosaurs.

Fortune: The new rules - Jul. 11, 2006

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Sunday, April 30, 2006

Service Oriented Project Management (SOPM); Bridging Three Worlds

With all this talk about Business Process Reengineering (BPR), and the latest industry focus on innovation, I've been piecing together a model that brings together the best of BPR, Innovation, and Project Management (and even borrows elements of ITIL). I call it Service Oriented Project Management or SOPM. I believe the term has been used, but not in this context, and not as a formal model. I think it's important enough that it needs to be formalized.

There are some that view these three disciplines as separate, or even mutually-exclusive, but they're not. In fact, to be successful, these disciplines need each other. It should go without saying that BPR needs innovation in order to break new ground (resulting in dramatic and radical change, as opposed to incremental change). And project management skills are needed to keep a team on track and manage risk.

Certainly, there are situations where incremental change is quite appropriate, and, for these cases, process "improvement" disciplines such as Six Sigma and TQM are fine. But especially when radical change is needed, we need a superstructure of good project management to lead all phases of a BPR initiative, from the as-is state exploration, through the to-be state development and validation, and to the actual implementation of the initiative.

Likewise, project management in general needs the strong customer focus that BPR brings (usually sorely lacking in most projects). Almost any project can benefit from a BPR-type approach of getting to the root of the customer's problem first-hand, and bringing about dramatic results through innovative thinking. This also takes project management beyond the realm of simple "execution and control".

Using a BPR lifecycle, innovative thinking, and an overall project management approach, we get a holistic methodology that uses the best of each. And, if this is driven by overarching principles from all three disciplines, we can boost our chances of success exponentially.

And finally, there's the customer. EVERYTHING in all of these disciplines must have a relentless focus on the customer. With any initiative, the glue that holds all of this together is a service owner--- someone who understands the customer's needs (and their business) and owns the initiative from cradle to grave (just like an ideal order fulfillment process should be, according to Michael Hammer, the inventor of BPR). Whether or not this should be the project manager is a whole subject in itself, but it should be someone.

If the project manager does assume this role, then they had better have a strong customer and business focus, and be relieved of any project administration duties that aren't adding value to the customer (which can be assigned to a project accountant). In many companies, the project managers may not have the right skills for this role, but that's not to say that shouldn't change.

More to come, as I flesh out and develop the model. Meanwhile, I'm open to your thoughts on this.

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Thursday, April 27, 2006

Project 2007 Templates: Various Scenarios ...

Project 2007 will expand its repertoire of templates, to include scenarios such as Six Sigma DMAIC, new product development, merger and acquisition (M+A) evaluations, etc. ...

... "In Project 2007, we have added about 25 new templates to cover additional project scenarios. Each template suggests milestones, dependencies, and generic resources to give you a starting point. Obviously, you may change the proposed work breakdown structure to fit your needs. " ...

Project 2007 Templates: Various Scenarios: Via MSDN: Microsoft Office Project 2007 : New Templates in Project 2007 ...

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Monday, January 30, 2006

IT Projects: Front-End-Load Software Service ...

Software service augments enterprise project management tools to support the front-end-load (FEL) of IT projects: estimates, resource plans, and schedules. ...

... "SCOPE iT Inc., a provider of IT project planning software services, today announced the latest version of its flagship product, SCOPE iT v.5. SCOPE iT is a web-based software service that helps CIOs and CFOs develop more accurate IT project plans, including cost estimates, resource requirements and time schedules. According to the 2004 Standish Group Chaos Report, $55 million annually is wasted on failed IT projects, which represents 22 percent of an average organization’s IT project budget. SCOPE iT is designed to reduce that number and can help double an organization’s project success rate, saving up to 10 percent or more of its IT project budget, while improving compliance with governance initiatives and frameworks such as Sarbanes-Oxley (SOX), ITIL, CMMI, COBIT and Six Sigma.

This latest version of SCOPE iT – v.5 – provides important up-front project planning capabilities – including estimating, forecasting, resourcing, scoping and scheduling – that complement project management and PPM applications. SCOPE iT v.5 includes a number of new features tailored toward large enterprise organizations, including support for project portfolios, user definable cost categories and enhanced management, organization and customization capabilities. " ...


IT Projects: Front-End-Load Software Service: Via ScopeIT: SCOPE IT INC. INTRODUCES NEW IT PROJECT PLANNING SOFTWARE SERVICE: SCOPE iT v.5 Provides Expanded Capabilities To Increase IT Governance Success ...

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Tuesday, November 22, 2005

Is Business Process Focus Limiting Enterprise Success?

Ross posts about the end of process as we know it. Is a focus on business process limiting the success of your enterprise? I am not ready to abandon the concept of process yet. There is tremendous opportunity to reduce defects (the exceptions) in process to the appropriate sigma level (six?) and share the benefits with customers. Those companies that harness business process quality for the customer's sake can gain a competitive advantage. ...

Is Business Process Focus Limiting Enterprise Success?: Via Ross Mayfield's Weblog: The End of Process ...

... "John Seely Brown and John Hagel point out that while 95% of IT investment goes to support business process (to drive down costs), most employee time isn't spent on process -- but exceptions to process. Further, competitive advantage comes from how we innovate in handling exceptions. " ...


Is this the end of business process? ...

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Tuesday, October 25, 2005

Outstanding Project Heritage: PACCAR ...

Interesting anecdote on an outstanding accomplishment by PACCAR: 4600 Six Sigma projects. This project management heritage is enabling strong corporate performance. ...

Outstanding Project Heritage: PACCAR: Via PACCAR Inc: PACCAR Profits Surge 24 Percent: Best Quarter in Company’s 100-Year History: PACCAR Announces Stock Repurchase ...

... "PACCAR's geographic diversification, disciplined business practices and innovative product breadth have been key success factors in the company's outstanding financial performance, added Pigott. Over the past 10 years, PACCAR has invested over $1.5 billion to fund capital projects which have enhanced the company's technology leadership, resulting in the highest product quality and customer satisfaction in the industry. In addition, completion of 4,600 Six Sigma projects has contributed to the company's record manufacturing efficiency. " ...

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When is SAP Project Complete?

Recent, Dupont announcements show that, even though an SAP project go-live is complete and stabilized, business value must be driven through follow-on projects, using methods such as Six Sigma and lean supply chain techniques. ...

When is SAP Project Complete?: Via DuPont.com: DuPont Announces Actions To Increase Shareholder Value ...

... "DuPont will accelerate work already underway to standardize and simplify its operating processes and will reduce its functional support costs to externally-benchmarked top-quartile standards. This work will make full utilization of the investment in new state-of-the-art information technology for business and financial systems (SAP) implemented over the past five years. Building on its well-established Six Sigma base, the focus will include lean global supply chain practices to strengthen service, reduce costs and reduce inventory. " ...

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Project Management Process Head Start

Need a head start defining your project management processes; or just want to get some methodology ideas? Check out TenStep.com, which offers a full project management methodology free on their website. It also offers some good comparison charts, comparing their model to PMBOK, PRINCE2, SIx Sigma, and Agile methodologies. Some interesting stuff here.

Home - TenStep Project Management Methodology

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Friday, October 21, 2005

Free Webinars on Project Management - (Earn PDUs!)

My post yesterday touched on how important it is to get respected and relevant certifications. Attention all PMP's who need to get more PDUs - this is the place for you! Save the link below as one of your favorites! There are several FREE Webinars offered on this site that you may find interesting, such as:

  • The New PMBOK Guide - an Overview
  • Project Management for IT Professionals
  • Managing multiple projects overview
  • Quality Improvement in Project Management Overview
  • Benefits of becoming a Six Sigma Green Belt

Check out this link for more. Happy learning!

International Institute for Learning Free Webinars

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Friday, September 16, 2005

Portfolio Management: Business Assets ...

Via Six Sigma Technologies International: Portfolio Management: Managing I.T. As A Collection Of Business Assets

Martin Moderi discusses thoughts on managing the IT portfolio as a collection of business assets ...

... "Portfolio components are periodically reviewed and ranked by business value added, taking into account both internal changes (e.g. changes in company strategy, product mix, distribution channels, etc.) and external events (e.g. changes in technology, competitor advances, etc.). " ...

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Tuesday, August 30, 2005

Enterprise Portfolio Management Across Diverse Investment Areas ...

Enterprise Portfolio Management Across Diverse Investment Areas: Via Instantis: Driving Corporate Performance: Unmatched Customer Momentum Drives Four Consecutive Quarters of 40% Growth for Instantis: New Wins with Industry Leaders and Advanced Enterprise Performance Improvement Capabilities within Instantis EnterpriseTrack 4 Extend Company’s Market Leadership ...

Hexion leverages Instantis performance improvement tool to manage full breadth of project portfolios across enterprise investment areas, such as Capex, NPD, IT, M+A, etc. ...

... "Hexion; formerly Borden Chemicals (7,000 employees and over $4 billion annual revenues), headquartered in Columbus, Ohio with 86 production and distribution facilities in 18 countries in the Americas, Europe and the Asia-Pacific region. Hexion Specialty Chemicals is the world's largest producer and has the broadest range of thermoset resin technologies to offer the market, with world-class research, applications development and technical service capabilities. To install, the Hexion team was able to migrate seamlessly from an earlier competitive tracking solution to the more advanced and flexible enterprise performance improvement features of EnterpriseTrack 4 in order to support seven different languages and better manage initiatives within Capital Projects, New Product Development, IT, Product Execution and Mergers and Acquisitions. " ...


Instantis is a leading provider of Enterprise Performance Improvement software for Global 2000 companies like Lockheed Martin, McKesson and Xerox that have deployed Six Sigma and other structured, project portfolio based business improvement methodologies. Instantis software automates the end-to-end execution, management and reporting of these methodologies. With a unique capability to provide a bridge between strategic priorities and execution, Instantis solutions allow industry leaders to deliver improved financial results and better alignment of goals and activities throughout the organization.

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Automate Portfolio Management Process: Neilsen ...

Automate Portfolio Management Process: Neilsen: Via Mercury: Mercury IT Governance Center Rates High with Nielsen Media

Neilsen leverages Mercury ITG to automate their portfolio management process ...

... "Nielsen was looking for a way to improve customer response time and transform their time-consuming manual portfolio management process to an automated process across business units. They wanted a portfolio management process to provide increased visibility and efficiency to quickly get proposals and requests for different audience rating services into the work flow. Nielsen was also looking to gain a more strategic approach to matching daily demand versus tactical demand. " ...


Mercury IT Governance Center™ helps customers automate IT business processes from demand management to portfolio, program and resource management, to change management. Mercury IT Governance Center is comprised of integrated applications, a real-time dashboard and an enterprise foundation. Mercury IT governance products and services help customers with compliance regulations such as Sarbanes-Oxley, and it supports quality programs and process control frameworks such as Six-Sigma, CMMI (Capability Maturity Model Integration), ITIL (IT Infrastructure Library), ISO-9000, and COBIT (Control Objectives for Information and related Technologies).

Nielsen Media Research is the world’s leading provider of television audience measurement and advertising information services. In the United States, Nielsen’s National People Meter service provides audience estimates for all national program sources, including broadcast networks, cable networks, Spanish language networks, and national syndicators. Local ratings estimates are produced for television stations, regional cable networks, MSOs, cable interconnects, and Spanish language stations in each of the 210 television markets in the U.S., including electronic metered service in 56 markets.

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Value Management: Pricing Perspective

Value Management: Pricing Perspective: Via SmartPros: Who's in Charge of Value in Your Firm?

Eye-opening perspective, by Ron Baker, on value management and its potential for competitive advantage ...

... "Why are these organizations investing such an enormous amount of human capital into the pricing function? Because they realize they can only cut costs, re-engineer, implement TQM and Six-Sigma programs to a certain point, and diminishing returns have already arrived. By focusing on creating value, and then capturing it through pricing more intelligently, they are realizing large returns for their investment. " ...

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Sunday, August 28, 2005

Project Portfolio Approach: Continuous Improvement ...

Project Portfolio Approach: Continuous Improvement: Via IDD Aerospace Lean Manufacturing Operations: Six Sigma Process Controls Improve Quality and Reduce Manufacturing Lead Times ...

Continuous improvement projects are managed using a portfolio approach to strategic alignment at IDD ...

... "Project Management: At IDD Aerospace, we take a Project Management Office (PMO) approach and methodology for managing our cost reduction and Continuous Improvement efforts. All project candidates, whether they are Six Sigma, Lean Kaizen, Technology advancements, etc. are prioritized, planned, and managed according to our objectives and goals. ... " ...


IDD Aerospace is part of the Aircraft Systems Division of the Zodiac Group. The company is located in Redmond, WA and is a leading provider of illuminated light panels, control panels assemblies and integrated switch panels, bezels and keyboards for aircraft flight decks to customers worldwide.

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Thursday, August 18, 2005

Benefits Realization: Accelerate Time to Value

Often, benefits do not immediately accrue at the completion of an IT project. A period of stabilization is needed for the newly-enabled business process(es). Also, the workforce may need to be nurtured to drive adoption rates to the targeted levels.

In order to accelerate time to value, key process indicators and usage rates should be baselined prior to go-live and tracked immediately following. Techniques, such as Six Sigma, may be required to ensure delivery of the full business value by methodically eliminating defects that prevent world-class process performance.

References on benefits realization:

Via Planview: PlanView Announces Results of CIO Survey: Fortune 1000 Companies Say Benefits Realization a Key IT Challenge ...
... "Benefits realization is a key component to the clear communication of IT's contribution to the overall objectives of the organization. It begins with the strategic initiative and is reviewed in a disciplined cycle through funding, project definition and execution and product or service deployment to provable benefit realized. " ...


Via IBM: Reaching efficient frontiers in IT investment management ...
... "And measuring doesn’t end as soon as the project does. A key aspect of value realization is post-implementation evaluation to assess the actual benefit realization at future points in time. Initial project planning needs to include benefit assessment after the project has been delivered. " ...


Via DMReview: Managing a Breakthrough Data Warehousing Project ...
... "The trend for the 21st century is to manage portfolios of projects which include IT as a component, or intermediary outcome, of the entire life cycle from concept to benefits achievement. An effective project management methodology is needed to detail the planning process necessary to ensure the business objectives are met. " ...

Benefits Realization: Accelerate the time to value when realizing benefits from IT projects ...

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Monday, August 15, 2005

Program Management Software: Operational Excellence Portfolio...

Program Management Software: Operational Excellence Portfolio: Via PowerSteering Software, Inc.: POWERSTEERING SOFTWARE EXPANDS OPERATIONAL EXCELLENCE MARKET SHARE, ADDS SEVERAL LEADING SIX SIGMA CUSTOMERS: Strong Demand Spurs Funding to Support Continued Expansion ...

Program management of a portfolio of Six Sigma projects requires visibility to enable smart decision making on the road to operational excellence. Software that enables program management, such as PowerSteering, becomes a key enabler when managing a globally-distributed, diversified portfolio of operational efficiency projects. Executive leadership is interested in the value potential, time-to-value, and probability of success of the portfolio. Providing these answers allows more robust program management. ...

... "As Operational Excellence strategies like Six Sigma continue to exhibit a strong resurgence in the market, we have seen an increased need for PowerSteering to provide executives with global visibility and real-time decision making, said Stephen Sharp, President and CEO of PowerSteering. With words and actions, analysts, customers, investors and partners are all telling us the same thing, PowerSteering is the leading company for Six Sigma and other Operational Excellence programs. " ...

Program management is key to success of a portfolio of operational excellence projects ...

PowerSteering Software, the leader in Enterprise Performance Improvement, provides OnDemand program management solutions for Lean, Six Sigma, and other Operational Excellence initiatives and large-scale programs. PowerSteering’s solutions provide executives with real-time visibility, strategy alignment, and enhanced program and team effectiveness, empowering more than 65 customers, including GE, Raytheon, Textron and Tyco, to drive strategy and accelerate results across the enterprise. PowerSteering’s solutions manage more than $25 billion in target savings, support more than 75,000 active users, and track more than 150,000 projects.

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